An owner-draw is not reported on the K-1. The owner draws will simply decrease each individual capital account.
When you have an LLC, all income flows through to the owners of the LLC on the K-1. The 1065 is simply an informational return. This means whether or not you take a draw you will be taxed on your share of the income the LLC receives. All of the income reported on the K-1 will be reported on the individual owners 1040 and will be subject to Social Security and Medicare taxes. The amount taxed has nothing to do with the amount actually withdrawn.
For example, if the LLC has $100,000 in profits with 2 owners and each owning 50%, then each K-1 will report the owners share of $50,000. Each owner will report that $50,000 on their individual 1040. Even if owner A takes $45,000 out and owner B takes no actual distributions they will still BOTH report $50,000 on their 1040.
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